August 12, Colombo (LNW): Energy Minister Kumara Jayakody has stated that there will be no reduction in fuel taxes until the Ceylon Petroleum Corporation (CEYPETCO) fully settles its outstanding debts, signalling that motorists and industries should not expect any immediate easing of fuel prices through tax cuts.
In a recent television interview, the Minister explained that any attempt to eliminate or significantly lower the current tax on fuel—which stands at approximately 50 per cent—would severely compromise the Corporation’s ability to meet its financial obligations.
Jayakody noted that whilst a portion of the CEYPETCO’s loans has already been paid off, a substantial amount remains unsettled. He estimated that roughly 30 to 40 percent of the total debt has been cleared to date.
According to him, maintaining the current tax rate is essential to ensuring that the repayments continue without disruption. Reducing or removing the tax prematurely, he warned, would force the government to explore alternative revenue streams to cover the resulting shortfall—an approach he suggested would be economically unsustainable under present conditions.
